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» ICT Development Agency
The program of the government is built on the following premises:
- Enhanced competitiveness and innovation will result from the wide implementation of cutting-edge technologies, particularly in the areas of IT and telecommunications, from ensuring high standards in education, and from modernising the economy and constructing a modern infrastructure;
- ICT investments are viewed as a factor stimulating investments in other fields;
- ICT is becoming a major engine of economic growth.
The government has set the following strategic objectives:
- Promote investments in the ICT sector and the development of R&D networks;
- Create a competitive, export-oriented software industry;
- Capitalize on Bulgarian strong educational traditions;
- Encourage the small and medium enterprises in the ICT sector;
- Encourage young graduates to start their own businesses in Bulgaria.
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IT companies profile
The high potential of Bulgarian IT resources (well-educated professionals and relatively good basis for development) was the reason for the designation of electrical engineering and electronics industry as a strategic sector and giving this sector priority in long-term development programs. These priorities are also due to the efficient export record of the sector. In 2000 this sector’s production accounted for 3.1% of the total industrial output. The relatively small size of the domestic IT market is the reason for the growing number of IT companies, which are working on assignments entirely for foreign markets.
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IT Market development
According to the Information Society Index, which rates 55 countries, comprising 96% of World GDP and 99% of World’s expenditure, Bulgaria falls in the Sprinter Group (where investments surge and retreat on the whims of social, political, and economic change), together with countries like Czech Republic, Poland and Hungary. However, Bulgaria has the advantage of established traditions and experience in the IT sector and well-structured private companies, which cover almost the whole spectrum of IT applications. According to research of the IDG group, the yearly growth of the IT sector in Bulgaria is about 35%. IT spending for 2001 is about USD 188.4 million and estimated total revenues will be around USD 270 million.
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